TMI BlogInvestment by Foreign Portfolio Investors (FPI) in Debt - ReviewX X X X Extracts X X X X X X X X Extracts X X X X ..... o the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA.20/2000-RB dated May 3, 2000 , as amended from time to time and the relevant directions issued thereunder. 2. In this regard a reference is invited to AP (DIR Series) Circular No. 24 dated April 27, 2018 , notifying changes affecting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te bonds with minimum residual maturity of above one year, in order to bring consistency across debt categories, it is stipulated that investments by an FPI in corporate bonds with residual maturity below one year shall not exceed, at any point in time, 20% of the total investment of that FPI in corporate bonds. 4. In addition, the following clarifications are issued with respect to the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the FPI shall bring such share below 20% within a period of six months from the date of this circular; however, the FPI shall ensure that no further additions are made to the portfolio of securities with residual maturity of less than one year as on 02 May 2018 (beginning of day), either through fresh purchases or through roll-down of investments with current tenor of more than one year, until t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . b.) A newly registered FPI would mean FPIs registered after April 27, 2018. (vi) The implementation date of online monitoring of utilization of G-sec limits has been set as June 1, 2018. The existing process for monitoring of limits as well as allocation of limit through auction mechanism will continue in the meantime. 5. These directions would be applicable with immediate effect. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
